Broad authority for the governor to regulate state S&Ls as a group or on an individual basis, in effect through June 30, 1986.
* Legislation permitting appointment of conservators or receiverships, and pledges of collateral to the Federal Reserve to support borrowing from the Fed.
* Emergency appropriation of $1 million to the Board of Public Works for administrative costs of implementing the program.
* Creation of the Maryland Deposit Insurance Fund, within the Department of Licensing and Regulation, to assume assets and liabilities of MSSIC. Initially, all state chartered associations would be members. After June 1, associations with savings accounts of $25 million or more could remain members for: -- seven months while making application for federal insurance; -- three months after application for federal insurance is denied; -- one year if controlled directly or indirectly by an institution with federal insurance; -- one year after an association's assets exceed the $25 million threshold.
* S&Ls with assets in excess of $25 million that cannot qualify for federal insurance would be placed in conservatorship or receivership once those time limits were exhausted. S&Ls with assets of less than $25 million will stay in the state insurance fund until some other solution is devised. One solution might be to merge some of them. Others might eventually be forced to go out of business.
* Several proposals would help state S&Ls to qualify for federal insurance, which requires a 5 percent net worth for MSSIC S&Ls. It means that a savings institution must have accessible funds equal to 5 percent of liability. One plan would allow those institutions that fall short of that to qualify by additional investments by owners or by being purchased by an in-state or out-of-state S&L or bank. The latter would be subject to approval by state and federal agencies. Under another proposal, the state would issue a note to the S&L in exchange for a net worth certificate, a document that would give the state control of the thrift's equity interest. The state-issued note would allow the thrift to meet the 5 percent requirement.
* Authorize a $200 million bond issue to fund the MDIC or to purchase net worth certificates.